New research from a collaboration with ANU policy and economics experts has just been published in Energy Policy – available free of charge here: https://www.sciencedirect.com/science/article/pii/S0301421523000022
The policy implications of our findings are summarised below.
Policy interventions that seek to redress the near exclusion of rental properties from solar PV face a delicate balance in both perceptions and impacts: creating benefits for tenants, who may be worried about having to pay higher rents, without overly benefiting property investors, who are relatively wealthy.
The core policy implication of our study is that policies that focus primarily on addressing high upfront costs (as have historically been used) are likely to be limited in their reach. The BWS survey indicated that respondent property investors are on average concerned that they would be unable to benefit from installing solar PV by charging higher rents.
Correcting information asymmetries by focusing policies on mechanisms to make the value of solar more visible to all parties in the market could be a means to release policymakers from the loaded challenge of balancing the incentives offered to property investors and the benefits flowing to tenants.
One way through which to increase visibility of the value of solar PV is through active monitoring and disclosure of the performance of solar PV systems to the rental market (providing the market with assurance that a system is operating well). This is most effective when the value is presented in tangible financial (dollar) terms, rather than more abstract ratings such as energy efficiency stars.